Correlation Between SentinelOne and Agha Steel
Can any of the company-specific risk be diversified away by investing in both SentinelOne and Agha Steel at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining SentinelOne and Agha Steel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SentinelOne and Agha Steel Industries, you can compare the effects of market volatilities on SentinelOne and Agha Steel and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in SentinelOne with a short position of Agha Steel. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and Agha Steel.
Diversification Opportunities for SentinelOne and Agha Steel
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between SentinelOne and Agha is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Agha Steel Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agha Steel Industries and SentinelOne is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on SentinelOne are associated (or correlated) with Agha Steel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Agha Steel Industries has no effect on the direction of SentinelOne i.e., SentinelOne and Agha Steel go up and down completely randomly.
Pair Corralation between SentinelOne and Agha Steel
Taking into account the 90-day investment horizon SentinelOne is expected to generate 0.75 times more return on investment than Agha Steel. However, SentinelOne is 1.32 times less risky than Agha Steel. It trades about 0.11 of its potential returns per unit of risk. Agha Steel Industries is currently generating about -0.33 per unit of risk. If you would invest 2,654 in SentinelOne on August 30, 2024 and sell it today you would earn a total of 154.00 from holding SentinelOne or generate 5.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SentinelOne vs. Agha Steel Industries
Performance |
| Timeline |
| SentinelOne |
| Agha Steel Industries |
SentinelOne and Agha Steel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SentinelOne and Agha Steel
The main advantage of trading using opposite SentinelOne and Agha Steel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, Agha Steel can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Agha Steel will offset losses from the drop in Agha Steel's long position.| SentinelOne vs. Crowdstrike Holdings | SentinelOne vs. Okta Inc | SentinelOne vs. Cloudflare | SentinelOne vs. MongoDB |
| Agha Steel vs. Silkbank | Agha Steel vs. Soneri Bank | Agha Steel vs. Security Investment Bank | Agha Steel vs. EFU General Insurance |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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